Alberta on Another Move to Exit the National Pension Plan, Transfer $334 Billion Asset (Over Half of CPP Assets)

The Canada Pension Plan (CPP) is the compulsory national pension program that every working Canadian (excluding Québecers) is expected to contribute to. 

The CPP equivalent in Québec is known as the Québec Pension Plan (QPP).

Except for Québec, every other province and territory in Canada is operating the CPP which is administered by the Canada Revenue Agency (CRA).

Alberta has been seeking to exit the national pension plan for over two decades, with the recent attempt influenced by its newly enacted Alberta Sovereignty Act

The major reason for the exit is that Albertans contribute more than they gain from the national pension plan.

By leaving the CPP program, Alberta seeks to establish its own pension plan and transfer over half of the CPP assets ($334 billion).

The Peak regrets that making that dream a reality will:

“greatly diminish the retirement safety net for the rest of Canada (except Québec…) and could result in higher pension contributions for non-Albertans.”

Expectedly, the exit doesn’t seem to resonate with most Albertans as shown by recent polls.

Should the Alberta Government proceed with its plan to hold a referendum on the subject, it’s more likely to have the idea dead and buried.

Sources:

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Paul
Moderator
8 months ago

As noted by someone on Reddit:

“If Albertans want to do so, they should go ahead and do so. However, consider the following:

1) the line about Alberta being entitled to 53% of CPP’s assets is completely disingenuous and ridiculous. CPP’s assets don’t belong to any province but to the workers who have contributed to it. Leave my pension alone!

2) if Alberta took 53% of CPP’s assets, I think there would be a lot of resentment from the rest of Canada. Kind of feels like Alberta is feeding into another “us vs Ottawa” narrative.

3) AIMco is one of the worst performing fund managers in the country. If the Heritage Savings Trust is any indication, the Government of Alberta should not be trusted to manage any large monetary assets.”